In April, the Board of Directors of the American Council on Gift Annuities (ACGA) approved a new schedule of suggested maximum gift annuity rates for gifts established on or after July 1, 2011. The new schedule reflects the ACGA rate setting methodology and the results of a recent ACGA study on charitable gift annuitant mortality. The methodology maintains ACGA's longstanding residuum target of 50%, with an additional requirement that the present value of the residuum be at least 20% of the gift amount. The new rates also reflect a more conservative investment return assumption.
Generally speaking, the new rate schedule contains slightly lower rates for single-life annuities for ages 69 and younger, and slightly higher rates for single-life annuities at ages 75, with the top rate rising to 9.8%. Similar changes apply to 2-life gift annuity rates. Click here to view the ACGA rate schedule.
The 2011.2 version of the Crescendo software with the new rates will be released in June. You will want to load your software by the end of June because the new rates are effective July 1.
We appreciate all of our Crescendo users. Thanks for all you do to help philanthropy!
ACGA Rates for a Single Life [Effective July 1, 2011]
Age
Rate
5 and Under
3.0
6
3.0
7
3.0
8
3.1
9
3.1
10
3.1
11
3.1
12
3.1
13
3.2
14
3.2
15
3.2
16
3.2
17
3.2
18
3.3
19
3.3
20
3.3
21
3.3
22
3.3
23
3.4
24
3.4
25
3.4
26
3.4
27
3.5
28
3.5
29
3.5
30
3.5
31
3.6
32
3.6
33
3.6
Age
Rate
34
3.6
35
3.6
36
3.7
37
3.7
38
3.7
39
3.7
40
3.8
41
3.8
42
3.8
43
3.9
44
3.9
45
3.9
46
4.0
47
4.0
48
4.1
49
4.1
50
4.2
51
4.2
52
4.3
53
4.3
54
4.4
55
4.4
56
4.5
57
4.6
58
4.7
59
4.7
60
4.8
61
4.9
62
5.0
Age
Rate
63
5.1
64
5.2
65
5.3
66
5.4
67
5.5
68
5.6
69
5.7
70
5.8
71
5.9
72
6.0
73
6.2
74
6.3
75
6.5
76
6.6
77
6.8
78
7.0
79
7.3
80
7.5
81
7.7
82
7.8
83
8.0
84
8.2
85
8.4
86
8.6
87
8.9
88
9.2
89
9.5
90 and Over
9.8
ACGA Rates for Two Lives - Joint and Survivor [Effective July 1, 2011]
